KENANGA ANNUAL REPORT 2017

SEGMENTAL REVIEW: INVESTMENT MANAGEMENT In 2017, following a business strategy realignment, we streamlined our Asset Management and Wealth Management businesses. The combined efforts from Kenanga Investors Group (KIG) and Wealth Management (WM) have resulted in an increase revenue of RM84.79 million from RM49.75 million the year before. Losses before tax for the combined business units narrowed to RM1.93 million from losses of RM8.14 million in 2016. During the course of the year, the division has expanded their distribution arms and client segments. In addition to mass retail market and institutional clients, a new unit, Private Wealth was started to serve the Ultra High Net Worth (UNHW) segment. Asset Under Management (AUM) of KIG grew from RM7.48 billion in 2016 to RM8.68 billion as of end 2017 and management fee revenue had also grown by over 18% for the year resulting in the company being less dependent on performance fee income. Its third-party funds also grew to RM0.51 billion in 2017. As a whole, it has achieved a more balanced segmentation of its AUM, with institutional and retail making up 40% each, and the remaining 20% in the wholesale money market space. The WM division also grew its Asset Under Administration (AUA) to above RM1.64 billion and reduced its losses significantly. KIG continued to receive industry accolades for its growth and performance. The highlight of the year was being named Investors’ Choice – Fund House of the Year at the Fundsupermart.com’s Recommended Unit Trusts Awards 2017/2018. The Kenanga Growth Fund was recognised under the Core Equity – Malaysia category for the eighth (8 th ) consecutive year. Simultaneously, the Kenanga OnePRS Growth Fund and the Kenanga OnePRS Conservative Fund were recognised under the Private Retirement Scheme – Growth and Private Retirement Scheme – Conservative categories respectively. KIG also won The Edge Thomson Reuters Lipper Malaysia Fund Awards 2018 for Best Equity Group (Islamic) and for its funds, Kenanga Syariah Growth Fund won Best Equity Malaysia (Islamic) under the ten (10) years category and Kenanga Malaysian Inc Fund won Best Equity Malaysia (Provident) under the three (3) years category. KIG has gained international recognition from Asia Asset Management’s 2018 Best of the Best Awards by being named the Malaysia Best Pension Fund Manager for the first (1 st ) time. Its Chief Executive Officer (CEO), Ismitz Matthew De Alwis was named 2018 Malaysia CEO of the Year for the second (2 nd ) year running while its Chief Investment Officer, Lee Sook Yee, was named 2018 Malaysia CIO of the Year for the third (3 rd ) consecutive year. Outlook 2017 marks the end of KIG’s three (3)-year Med-Term Plan (MTP) and over this period, it has focused on delivering a strong investment performance, boosting its investment management brand, providing superior client service with relevant product offerings and enhancing its distribution reach. Annual Report 2017 17